Lead Time

In the text below, you will find descriptions about how lead times are calculated and used within IFS Applications. To reach the section you are interested in, please use the following bookmarks:

Lead times in inventory part
Lead times in supplier for purchase part
Lead times in supply chain parameters
Lead time in system data for inventory and distribution
Total purchase lead time
To fetch correct ship via into customer order and purchase order
Ship via code on customer order
Supplier ship via transit on customer order line
Ship via and supplier ship via transit on customer order line created from source line
Ship via on purchase order
Lead times in customer order

Lead Times in Inventory Part

Purchase Lead Time

The total lead time of a purchase part is the time from when the part is ordered until it is available in inventory, i.e., the primary supplier's manufacturing and external transport lead times plus the internal transport lead time and the internal inspection lead time. You can calculate the total lead time of a purchased part in the Calculate Purchase Leadtime dialog box. The result of the calculation is presented in the Acquisition tab of the Inventory Part window when using the Update option.

Manufacturing Lead Time

For manufactured parts, the lead time is the collective lead time for manufacturing the part from its components. Manufacturing lead times can be found in the Acquisition tab as well as in the Manufacturing tab. These lead times can be calculated using the lead time calculations found in Manufacturing Standard/Calculation or in the Routing window.

Expected Lead Time

The expected lead time is the time, in days, that it takes to receive the parts into inventory assuming that not all component parts are in inventory. Therefore, the value in this field includes acquisition lead time as well as manufacturing lead time. For example, let's say that you manufacture a part consisting of several components and one of the components is not in inventory and must be ordered. In this example, the manufacturing lead time of the part is incorrect because it assumes that all parts are available from inventory. Thus, you should use the Expected Lead Time field to help ensure that a part can be delivered in time, even when not all components are in stock.

You can manually enter the lead time in the Expected Lead Time field. The expected lead time can also be calculated using the lead time calculations Calculate Purchase Leadtime found in IFS/Purchasing, and Cumulative Lead Time Calculation, Lead Time Calculation, and Change Cumulative Lead Time found in IFS/Manufacturing Standards.

The default value for the Expected Lead Time field is 0 (zero). If no expected lead time is entered in the inventory part record, the expected lead time is the same as the purchase or the manufacturing lead time.

Lead Times in Supplier for Purchase Part

In the supplier for purchase part record, you can specify a supplier manufacturing lead time and an internal inspection lead time per combination of supplier and purchase part. Both these parameters are parts of the total lead time when goods are delivered from one node in a supply chain to another. However, it is important to note that these two lead times are not the only parameters included in the total lead time. Other lead time parameters involved in the total lead time are external transport lead time, internal transport lead time, and picking lead time.

Supplier Manufacturing Lead Time: The time from recognition of need for replenishment at the supplier until the product is ready for shipment from the supplier. This could be a replenishment either via manufacturing or via purchasing. The manufacturing lead time is measured in supplier calendar days, which only includes workdays. If no supplier calendar is defined, manufacturing lead time is measured in calendar days, which includes weekends and holidays.
Internal Inspection Lead Time: The time it takes to inspect the goods, after which they are available in inventory. In other words, the time it takes from when the part is available for inspection until the part is available in inventory. During this time, activities such as inspection, quarantine, and other activities that delay the part from reaching inventory can occur. The internal inspection lead time is measured in distribution calendar days, which only includes work days.

Lead Times in Supply Chain Parameters

In the supply chain parameter and the supply chain matrix windows, you can specify external transport lead time and, for some relations, internal transport lead time. Both these parameters are parts of the total lead time when goods are delivered from one node in a supply chain to another. However, it is important to note that these two lead times are not the only parameters included in the total lead time. Other lead time parameters involved in the total lead time are supplier manufacturing lead time, internal inspection lead time, and picking lead time.

External Transport Lead Time: The transportation time from a supply node to a demand node during which the supplying party has the responsibility. The external transport lead time is measured in external transport calendar days, which only includes workdays. If no external transport calendar is defined, external transport lead time is measured in calendar days, which includes weekends and holidays. The External Transport Calendar is defined by the Ship Via Code.
Internal Transport Lead Time: The transportation time from the delivery point of a supply node to a demand node during which the demanding party has the responsibility. This can be in cases where, for instance, a supplier has the delivery point some distance away from your company. Consequently, you must take the responsibility to transport the goods from that delivery point to your receiving point. The internal transport lead time is measured in site distribution calendar days, which only includes workdays.

Lead Time in System Data for Inventory and Distribution

Picking Lead Time: The average time it takes for a supply site to pick the goods ordered on a customer order for delivery to a customer. The picking lead time is measured in distribution calendar days, which includes only work days. This parameter is one part of the total lead time when goods are delivered from one node in a supply chain to another. Other lead time parameters involved in the total lead time are supplier manufacturing lead time, internal inspection lead time, external transport lead time, and internal transport lead time.

Total Purchase Lead Time

The total lead time of a purchase part is the time from when the part is ordered until it is available in inventory. The total purchase lead time is normally calculated in the Calculate Purchase Leadtime window by using the following four elements:

Supplier Manufacturing Lead Time: The time from recognition of need for replenishment at the supplier until the product is ready for shipment from the supplier. This could be a replenishment either via manufacturing or via purchasing. The manufacturing lead time is measured in supplier calendar days, which only includes workdays. If no supplier calendar is defined, manufacturing lead time is measured in calendar days, which includes weekends and holidays. The information is retrieved from the combination of supplier and purchase part.
External Transport Lead Time: The transportation time from a supply node to a demand node during which the supplying party has the responsibility. The external transport lead time is measured in external transport calendar days, which only includes workdays. If no external transport calendar is defined, external transport lead time is measured in calendar days, which includes weekends and holidays. The external transport calendar is defined by the ship via code. The information is retrieved from supply chain parameters.
Internal Transport Lead Time: The transportation time from a supply node’s delivery point to a demand node during which the demanding party has the responsibility. This can be in cases where, for instance, a supplier has his delivery point some distance away from your company. Consequently, you must take the responsibility to transport the goods from that delivery point to your receiving point. The internal transport lead time is measured in site distribution calendar days, which only includes workdays. The information is retrieved from supply chain parameters.
Internal Inspection Lead Time: The time it takes to inspect the goods, after which they are available in inventory. In other words, the time it takes from when the part is available for inspection until the part is available in inventory. During this time, activities such as inspection, quarantine, and other activities that delay the part from reaching inventory can occur. The internal inspection lead time is measured in site distribution calendar days, which only includes work days. The information is retrieved from the combination of supplier and purchase part.

When you specify the Update option when calculating the total purchase lead time, the result is presented in the inventory part record.

If the calculate purchase lead time function is not used, the default value will be set to 0 (zero). However, it is also possible to manually enter a value in the inventory part record.

The total purchase lead time is used for calculating dates when entering purchase requisitions or purchase orders.

To Fetch Correct Ship Via into Customer Order and Purchase Order

The data shown in the supply chain parameter windows and in the supply chain matrix windows are exactly the same. Therefore, only the supply chain parameter window will be referred to in the description that follows.

One of the key fields in the supply chain parameter windows is the Ship Via field. The ship via code describes how the goods will be transported from one node in a supply chain to another. When a customer or purchase order is entered, the ship via code is fetched from the supply chain parameters. Along with the ship via code, the external transport lead time and the internal transport lead time are also fetched. You can enter a ship via code in several places in IFS Applications, not only in the supply chain parameter windows but also on customer agreements, on supplier agreements, or on the customer or supplier record. It is important that the correct ship via code is fetched into the customer or purchase order since the ship via code determines the external transport lead time and the internal transport lead time. However, internal transport lead time is not saved on the customer order, it is only used in the total lead time calculations. On a purchase order, neither internal transport lead time nor external transport lead time is saved.

Ship Via Code on Customer Order

In the table below, the fetching of the ship via code into the customer order header and the customer order line is described. The Order Default check box on the customer order line will remain selected only when the ship via code and the external transport lead time are identical for the customer order header and the customer order line. In the description below, the upper table and lower table refer to the different parts in the supply chain parameter windows, where the lower table defines exceptions for certain supply chain part groups.

Header or line?	Which supply code?	Ship via code fetched from...
Header	N/A	First, from the agreement (general information). Second, from the default ship via code specified in the supply chain parameters, upper table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site. Third, from the customer record.
Line	<> Internal Purchase Direct or Purchase Order Direct	First, from the agreement (part specific information). Second, from the default ship via code specified in the supply chain parameters, lower table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site. Third: 1. Inherited from the header. 2. If the order is for a package component, inherited from the package's order line. 3. If the address is different from the header address, from the default ship via code specified in the supply chain parameters, upper table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site. Fourth, only if address is different from header address, from the customer record.
Line	Internal Purchase Direct	First, from the default ship via code from the supply chain parameters, lower table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site. Second, from the default ship via code specified in the supply chain parameters, upper table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site. Third, from the supplier record.
Line	Purchase Order Direct	First, from the default ship via code from the supply chain parameters, lower table. If the customer is external, from supplier-to-customer. If the customer is internal, from supplier-to-site. Second, from the default ship via code specified in the supply chain parameters, upper table. If the customer is external, from supplier-to-customer. If the customer is internal, from supplier-to-site. Third, from the supplier record.

One exception from the above is when the order line has a single occurrence address. Then the following should apply:

If supply code = internal purchase direct or purchase order direct, the ship via code should be fetched from the supplier record.
If supply code <> internal purchase direct or purchase order direct, the ship via code should first be fetched from agreement and, second, be inherited from the header.

Note that an update of the ship via code and/or external transport lead time is necessary if the prerequisites are changed. It is only if a customer order line has its Order Default check box selected that a change in the customer order header will affect the customer order line. The following changes have to be considered:

Delivery address is changed on the customer order header.
Ship via code is changed on the customer order header.
Delivery address is changed on the customer order line.
Ship via is changed on the customer order line.
Supply code is changed on the customer order line.
Supplier is changed on the customer order line.

Supplier Ship Via Transit on Customer Order Line

In the table below, the fetching of the supplier ship via transit into customer order line is described. The Order Default check box is not affected by this field. In the description below, the upper table and lower table refer to the different parts in the supply chain parameter windows, where the lower table defines exceptions for certain supply chain part groups.

Header or line?	Which supply code?	Supplier ship via transit fetched from...
Line	Internal Purchase Transit or Purchase Order Transit	First, the default ship via code specified in the supply chain parameters, lower table. If the supplier is external, from supplier-to-site. If the supplier is internal, from site-to-site. Second, the default ship via code specified in the supply chain parameters, upper table. If the supplier is external, from supplier-to-site. If the supplier is internal, from site-to-site. Third, from the supplier record. Fourth, if no record exists for the default delivery address on the Supplier/Address/Purchase Address Info tab, the ship via for the first delivery address will be fetched. If no delivery address exists at all, the field will be set to NULL..

Note that an update of supplier ship via transit is necessary if the prerequisites are changed. The following changes have to be considered:

Supply code is changed on the customer order line.
Supplier is changed on the customer order line.

Ship Via Code and Supplier Ship Via Transit on Customer Order Line Created from Source Line

In the table, below the fetching of the ship via code, supplier ship via transit, and external transport lead time into the customer order line created from the source lines is described. The Order Default check box on the customer order line will remain selected only when the ship via code and the external transport lead time are identical for the customer order header and the customer order line. In the description below, the upper table and lower table refer to the different parts in the supply chain parameter windows, where the lower table defines exceptions for certain supply chain part groups. Note that external transport lead time either represents the delivery from the order-taking site to the customer, or the delivery from supplier/supply site directly to customer. Consequently, when the correct external transport lead time is fetched from the supply chain parameter windows, the ship via code is used, not supplier ship via transit.

Which supply code?	Ship via fetched from?	Supplier ship via transit fetched from?	Delivery lead time fetched from...
Inventory Order	Source line	N/A	First, from the supply chain parameters, lower table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site. Second, from the supply chain parameters, upper table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site.
Internal Purchase Transit or Purchase Order Transit	Copied from originating customer order line	Source line	First, from the supply chain parameters, lower table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site. Second, from the supply chain parameters, upper table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site.
Internal Purchase Direct	Source line	N/A	First, from the supply chain parameters, lower table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site. Second, from the supply chain parameters, upper table. If the customer is external, from site-to-customer. If the customer is internal, from site-to-site.
Purchase Order Direct	Source line	N/A	First, from the supply chain parameters, lower table. If the customer is external, from supplier-to-customer. If the customer is internal, from supplier-to-site. Second, from the supply chain parameters, upper table. If the customer is external, from supplier-to-customer. If the customer is internal, from supplier-to-site.

Ship Via Code on Purchase Order

In the table below, the fetching of the ship via code into purchase order header and purchase order line is described. The Order Default check box on the customer order line will remain selected only when the ship via code and the delivery lead time are identical for the customer order header and the customer order line. In the description below, the upper table and lower table refer to the different parts in the supply chain parameter windows, where the lower table defines exceptions for certain supply chain part groups.

Header or line?	Demand site is?	Ship via fetched from?
Header	N/A	First, from the default ship via code specified in the supply chain parameters, upper table. If the supplier is external, from supplier-to-site. If the supplier is internal, from site-to-site. Second, from the supplier record.
Manual line	Same as header	First, from the supplier agreement. Second, from the default ship via code specified in the supply chain parameters, lower table. If the supplier is external, from supplier-to-site. If the supplier is internal, from site-to-site. Third, inherited from the header.
Manual line	Different from header	First, from the supplier agreement. Second, from the default ship via code specified in the supply chain parameters, lower table. If the supplier is external, from supplier-to-site. If the supplier is internal, from site-to-site. Third, from the default ship via specified in the supply chain parameters, upper table. If the supplier is external, from supplier-to-site. If the supplier is internal, from site-to-site. Fourth, inherited from the header.
Line from requisition	Same as header	First, if the requisition originates from a customer order, the ship via code is inherited from the customer order line: for transit delivery field Supplier Ship Via Transit, for direct delivery field Ship Via. Second, from the supplier agreement. Third, from the default ship via code specified in the supply chain parameters, lower table. If the supplier is external, from supplier-to-site. If the supplier is internal, from site-to-site. Fourth, inherited from the header.
Line from requisition	Different from header	First, if the requisition originates from a customer order. the ship via code is inherited from the customer order line: for transit delivery field Supplier Ship Via Transit, for direct delivery field Ship Via. Second, from the supplier agreement. Third, from the default ship via code specified in the supply chain parameters, lower table. If the supplier is external, from supplier-to-site. If the supplier is internal, from site-to-site. Fourth, from the default ship via code specified in the supply chain parameters, upper table. If the supplier is external, from supplier-to-site. If the supplier is internal, from site-to-site. Fifth, inherited from the header.
Line from customer order	N/A	If the purchase order line originates from a customer order, the ship via code is inherited from the customer order line: for transit delivery field Supplier Ship Via Transit, for direct delivery field Ship Via.

Note that an update of the ship via code is necessary if the prerequisites are changed. It is only if a purchase order line has its Order Default check box selected that a change in the purchase order header will affect the purchase order line. The following changes must be considered:

Delivery address is changed on the purchase order header.
Ship via code is changed on the purchase order header.

Lead Times in Customer Order

When a customer order is entered, several different lead time parameters are involved. These parameters provide for a correct calculation of different dates as well as a correct availability analysis.

Supplier Manufacturing Lead Time: The time from recognition of need for replenishment at the supplier until the product is ready for shipment from the supplier. This could be replenishment either via manufacturing or via purchasing. The supplier manufacturing lead time is measured in supplier calendar days, which only includes workdays. If no supplier calendar is defined, manufacturing lead time is measured in calendar days, which includes weekends and holidays. The information is retrieved from the combination of supplier and purchase part.
External Transport Lead Time: The transportation time from a supply node to a demand node during which the supplying party has the responsibility. The external transport lead time is measured in external transport calendar days, which only includes workdays. If no external transport calendar is defined, external transport lead time is measured in calendar days, which includes weekends and holidays. The external transport calendar is defined by the ship via code. The information is retrieved from supply chain parameters.
Internal Transport Lead Time: The transportation time from a supply node’s delivery point to a demand node during which the demanding party has the responsibility. This can be in cases where, for instance, a supplier has his delivery point some distance away from your company. Consequently, you must take the responsibility to transport the goods from that delivery point to your receiving point. The internal transport lead time is measured in distribution calendar days, which only includes workdays. The information is retrieved from supply chain parameters.
Internal Inspection Lead Time: The time it takes to inspect the goods, after which they are available in inventory. In other words, the time it takes from when the part is available for inspection until the part is available in inventory. During this time, activities such as inspection, quarantine, and other activities that delay the part from reaching inventory can occur. The internal inspection lead time is measured in distribution calendar days, which only includes work days.
Picking Lead Time: The average time it takes for a supply site to pick the goods ordered on a customer order for delivery to a customer. The picking lead time is measured in distribution calendar days, which includes only work days. The information is retrieved from the system parameters for the appropriate site.

The supply code set on the customer order line determines which parameters above should be included when calculating the total lead time since the supply code tells which source should supply the ordered quantity. The source can be another site (i.e., internal supplier), external supplier, in-house manufacturing, or own inventory. These different sources all have different total lead times. Consequently, it is important what supply code a customer order line carries. The supply code on a customer order line can be set automatically, via user-defined sourcing rules, or manually. The following supply codes are relevant when discussing total lead time: Inventory Order, Shop Order, DOP Order, Internal Purchase Transit, Internal Purchase Direct, Purchase Order Transit, and Purchase Order Direct. For further details, please study the example and the tables below.

Example: Supply code Internal Purchase Transit and the sales part is an inventory part at order taking site (B) as well as supply site (A):

The planned delivery date is the date we (B) plan to deliver the goods at the customers delivery address (C). Since we do not have the part in stock, we must order the part from another site (A) within our company group. Since we want to have control of the final shipment to the customer, we will first receive the goods from the supply site to our site, and then deliver it to the end customer. Site A is an internal site and, therefore, the supply code on the customer order line will be set to Internal Purchase Transit. In order to find out if it is possible to deliver to the customer on his wanted delivery date, a date calculation must be performed. Initially, we will assume that we can deliver at the customer's wanted delivery date, i.e., planned delivery date on the customer order line will be set to wanted delivery date. A backwards calculation is performed, as shown below:

planned delivery date
minus 1: external transport lead time from us to the customer address gives us planned ship date
minus 2: our picking lead time gives us planned due date
minus 3: internal inspection lead time
minus 4: internal transport lead time
minus 5: external transport lead time from supply site to us
minus 6: supply site's picking lead time gives us supply site due date

If the inventory part at the supply site has the Availability check box selected for the inventory part, an availability check will be performed at the supply site on the supply site due date. If the availability is less than the ordered quantity, or if the supply site due date is an earlier date than today's date, it will not be possible to deliver the customer order line in time.

In the tables below, you will find all lead time parameters used when calculating the total lead time for the different supply codes. You also will find the dates that are set on a customer order line when the sourcing is completed. And you will find a specification telling if it must be a work day or not, and in that case what calendar to use. In the tables below, you will see that the different scenarios are dependent on whether the sales part is an inventory part or a non-inventory part. This is relevant for the order-taking site as well as the supply site. Also note that in all total lead time calculations as well as date definitions, routes are considered. Routes are considered for both the order-taking site and the supply site.

Inventory Order:

Customer order line date?	Minus which lead time parameter?	Does it have to be a workday/workdays?	Which calendar to use?
Planned delivery date		No*	Customer
	External transport lead time	Yes**	External Transport
Planned ship date		Yes	Distribution
	Picking lead time	Yes	Distribution
Planned due date		Yes	Distribution

If the inventory part has the Availability check box selected, an availability analysis is performed.

* If orders are automatically created, the planned delivery date will fall on a workday. However, it is possible to manually enter a planned delivery date as a non-working day. If no customer calendar is defined, a 365 day calendar will be used.